Industry Analysis Paper Assignment Example | Topics and Well Written Essays - 2750 words

Industry Analysis Paper - Assignment Example Competitive advantage is also taken for improving organizational performance and then it enables the company to return in asset and increase sales. Researchers argue that competitive advantage is able to predict the variance in the performance of a business and then explain the organizational consequences (Ismail, Rose, Uli & Abdullah, 2011). It is moreover the representation of a major determinant of corporate success or failure, if an organization is not capable to analyze its competitors’ strengths, weaknesses and strategies. This inability leads to the suboptimal performance in business (Sohel, Rahman & Uddin, 2014). For that purpose, analyzing the competitors is the critical need for the company’s strategy formulation and implementation of its competitive advantage. In the recent decades there appeared new techniques that help to formulate and implement strategy. Some of the popular is the Five Forces of Porter. In the following report, such analysis will be impose d to the well-known brands, companies with the world name, a Swedish multinational retail-clothing company H&M (Hennes & Mauritz) and Spanish clothing and accessories retailer Zara. The report will analyze and contrast the competitive strategy of these two companies and develop a competitive profile for each business. H&M is a Sweden-based company that operates in forty countries of the world and is known for such brands as H&M, COS, Weekday, Monki, Cheap Monday and Other Stories. The company sells products online through catalogue in Austria, Denmark, Germany, Norway, Finland and the UK. The recent launched store in U.S. (in 2013), the company has expanded its online operations to Australia (Business profile, 2015). According to H&M Group income statement, consolidated statement of comprehensive income (H&M Annual report, 2013), the company’s profit for 2012 was estimated in $ 16,867 m, while in 2013